1 SYMPHONY share price target reports by brokerages below. See what is analyst's view on SYMPHONY share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Symphony has maintained balance sheet prudence with stringent control on the working capital cycle. With substantial free cash on the book, we believe the company will navigate through a tough macro environment. We lower revenue and earnings growth to factor in the negative outcome owing to Covid-19. We change our rating on the stock from HOLD to BUY with a revised target price of Rs 840 (21x FY22E EPS).
We expect earnings to grow at a healthy 25.9% CAGR over FY20-22, supported by launch of new models, improved product mix and continued focus on innovation. We roll forward to FY22E and upgrade our rating to ACCUMULATE on the stock with a revised target price of Rs. 1,480 based on target multiple of 35x P/E on FY22E adj. EPS.
With continuous innovation and launch of new higher margin products, higher contribution from subsidiaries, we expect the revenues to grow at ~20% CAGR between FY19-21E. However increasing competition may pose a threat to companies pricing power and existing market share, as company plans to focus on growth and profitability. We expect that extended winter may result in tepid demand in Q3 & part of Q4FY20, which will be recouped during late Q4FY20 & Q1FY21 given the volatility in temperatures and strong forthcoming summer season. Thus the company is expected to return to normal growth path. We revise our estimates upwards for FY20E/FY21E with a revised TP of Rs 1,488 (42 x FY21E EPS). Maintain a BUY rating.
With continuous innovation and launch of new higher margin products, higher contribution from subsidiaries, we expect the revenues to grow at ~17% CAGR between FY19-21E. However increasing competition may pose a threat to companies pricing power and existing market share, as company plans to focus on growth and profitability. While we expect the company to maintain growth momentum, we maintain target of Rs 1,398 valuing Symphony at 42x FY21E EPS of Rs 33.2.
Symphony’s 1Q performance was a blowout, even beat our aggressive estimates. 1Q performance has proved the naysayers wrong about the relevance of air coolers (in the era of fast growing RAC) and Symphony’s market share loss. Growth visibility for FY20E is high despite slowdown in macros owing to low channel inventory and new launches. We maintain our estimates and value Symphony at 45x Jun- 21 EPS, arriving at a TP of Rs 1,686. Maintain BUY.
We model revenue, earnings CAGR of 21%, 7%, respectively, in FY18-21E led by strong volume growth in the domestic business. Despite a strong recovery in Q1FY20, we believe consolidated EBITDA margins in the medium term would be under stress due to rising competition and consolidation of low margin business (consolidated EBITDA margin ~23% vs. standalone EBITDA margin of ~30%). Hence, we maintain HOLD rating on the stock with a revised target price of Rs 1295 (valuing at 38x FY21E).
Symphony operates on asset light business model requiring low capital investments; it outsources almost all its production to nine different OEMs thus ensuring that it is not dependent on any one vendor. This asset light strategy enables the management to concentrate on design, development and innovation along with marketing the product thus generating high return on capital employed (RoCE). We have a BUY with a target of Rs. 1,469.
Symphony Ltd is well positioned in the air-coolers industry owing to its well established brand with high recall, asset light business model, substantial market share and growth in demand for the product on back of improving affordability. We estimate the company to grow at a CAGR of 17% and earnings at CAGR of 11% over FY18-FY21E (FY19 is expected to show de-growth). When computed over FY19E-FY21E, we estimate the company to post robust growth of 18% CAGR in revenues and 29% CAGR in earnings. We value Symphony Ltd at 45x FY21E to arrive at price target of Rs 1,680 giving an upside of 37%
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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